Enter search term Search
About Us
We’re one of 12 regional Federal Reserve Banks working together with the Board of Governors to support a healthy economy. Our job is to serve the American public — to serve you. And our mission is to foster economic stability and strength.

Learn more about our bank >
Banking & Supervision
We help ensure our financial system is operating safely and effectively, and we help support secure and efficient methods to transfer your funds through our financial system.
Economic Research
We conduct research to support policymaking and thought leadership on issues important to the Federal Reserve and the Fifth District. We also inform the public through our data and economic analysis, publications, presentations and educational resources.

Learn more about Economic Research >
Region & Communities
We share research, data and resources and regularly engage regional leaders and policymakers to understand and address community‑specific economic issues.
- Small Town & Rural Initiative
- Regional Data & Analysis
- Community Development & Engagement
- Our Team
Education
We work with teachers, students and the public to enhance understanding of economics, personal finance and the Federal Reserve.

Learn more about our resources and educational programs. >
- Resources & Programs
- Classroom Visits
- Events
- People

Economic Review

Nov/Dec, 1990

Ricardo Versus Thornton on the Appropriate Monetary Response to Supply Shocks

David Ricardo (1772-1823) recommended countering supply shocks with monetary contraction. Henry Thornton (1760-1815) advised a constant-money response. Their views hinged (1) on the neutrality or non-neutrality of money-stock changes on real output and employment and (2) on the costs of inflation. These same considerations influence Federal Reserve policy in response to oil shocks today.

Contact Us

Lisa Davis (804) 697-8179

Economic Review

Nov/Dec, 1990

Ricardo Versus Thornton on the Appropriate Monetary Response to Supply Shocks

Phone Icon Contact Us

Contact Us